PIMCO Plans New Alternatives Push

Aug 29 2013 | 12:35pm ET

The world's biggest bond-fund manager is set to take advantage of new hedge-fund advertising rules.

Pacific Investment Management Co. plans a major expansion of its alternative investments business and is already preparing a new offering that will be available to retail investors with a $1,000 minimum investment, The Wall Street Journal reports.

Douglas Hodge, PIMCO's chief operating officer, told the Journal that alternatives are "a very important area for us," one made even more attractive by the lifting of an 80-year-old ban on hedge-fund advertising that takes effect next month.

"The world is going to change he because of the JOBS Act," he said.

Earlier this month, PIMCO filed a preliminary prospectus for a new liquid alternative fund that will invest in interest-rate, currency, mortgage, credit and commodity derivatives. The Pimco Trends Managed Futures Strategy Fund will have a retail share class with a $1,000 minimum, akin to a mutual fund.

Hodge said that the decision to expand its alternatives business—PIMCO already runs a $29 billion alternative bond fund—is a result of client demand.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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